India Goods and Services Tax (GST): Implications for ERP Supply Chain

Taxes Subsumed Under GST

Taxes Outside the Purview of GST

Modules Impacted by GST

1. Inventory: For Item Tax Configuration
2. Purchasing: For capturing Input Tax Payment
3. Sales Order: For capturing Input Tax Collection
4. Accounts Payable: For Capturing Input Tax Payment (In case Purchasing Module is not implemented or in case of Service Purchases)
5. Accounts Receivable: For capturing Input Tax Collection (In case Sales Order module is not implemented or when selling services)
6. India Localization Application: For Tax Settlement and statutory reporting

New Interfaces required
1. An interface with GST Network (GSTN) to upload returns and settlements

Prerequisites before going live in GST
1. Calculate the Opening GST Balances
2. Review all the interfaces with third party applications3. 

Risks
1. Four types of GST (SGST, IGST, UTGST and CGST)
2. Some items out of GST. So there could be a possibility of different taxes running together
3. Some taxes like Customs duty out of GST
4. Continuation of Cess and Surcharges will make tax settlement complex.
5. Complex Reporting